Andrews Government set to unveil plans to legalise Uber

UPDATE: EVERY taxi, Uber, or hire car trip will soon include a $2 levy to help fund the biggest industry shake-up in decades.

• Uber faces several new rivals in Victoria

TAXI, Uber, and hire car passengers face a $2 fee per trip for at least eight years to help buy back taxi licences and overhaul the industry.

Radical changes aimed at giving consumers a better ride, revealed by the Herald Sun last week, include legalising ride- share services like Uber and allowing taxi operators to set their own fares from 2018.

New laws will be introduced later this year to kickstart the reforms. The $2 levy will be added to trips from 2018.

The overall cost of the plan is about $450 million.

Taxi or ride-share operators will be charged the levy, and can pass costs to passengers however they like.

Some industry participants and the state Opposition have slammed this as “excessive” and a “broken promise”.

Uber driver Douglas Wilsmore with a $2 coin. Picture: Tony Gough

Premier Daniel Andrews in Parliament. Picture: Nicole Garmston

But Premier Daniel Andrews said it was only right to compensate taxi owners.

And Mr Andrews said that the move to a single registration system for every commercial transport operator in the state was revolutionary.

MORE: Uber is go in Victoria as cabbies win compo

Comment: Uber turns transport industry on its head

This is not just about changing the law for one company only to go through the whole process again when another app is with us. We’re levelling the playing field for the whole industry while ensuring consumers have safe and reliable access to transport services,” Mr Andrews said.

The Premier promised safeguards for vulnerable Victorians, including boosting incen­tives for wheelchair-­accessible taxis to be paid for through a $75 million ­taxpayer-funded “Fairness Fund”.

Under safety precautions, only vehicles with cameras fitted will be able to pick up fares at taxi ranks. And all drivers will have to be registered by the Taxi Services Commission and submit to criminal record and driver safety checks.

Public Transport Minister Jacinta Allan said the buyback scheme would be limited to $100,000 for the owners of one taxi licence; a second licence held by the same operator would fetch $50,000.

Uber is likely to be critical of the $2 levy. Photo: Daniel Wilkins

David Hodgett. Picture: Mike Dugdale

Operators who hold more than two licences would not get additional compensation — an approach condemned by companies such as Cabcharge.

Victorian Taxi Association CEO David Samuel cautiously welcomed the reform plan, saying it should lead to cheaper fares in the long run.

But he voiced concerns about the size of the $2 levy.

Uber said research showed levies could delay benefits to consumers of reform.

Uber Victoria general manager Matt Denman said: “We will continue working closely with the government … and trust we’ll continue to see bipartisan support.”

The government will need the support of the Opposition or minor party MPs to get the laws through parliament.

The Opposition’s David Hodgett said the Coalition would study the plan, but called the levy “Daniel Andrews’s brand new tax”.

“He went to the election promising no new taxes. Now he is going to slug Victorians with $2 on every ride.”

[e-mail]

@Media_Matt